This bill proposes significant amendments to property tax laws and local government financial practices in Iowa. Key changes include the introduction of a homestead exemption of $4,850 of taxable value, replacing the existing homestead credit, and the repeal of the property tax exemption for homeowners aged 65 and older. The bill also modifies the assessment frequency from every two years to every three years starting in 2025 and establishes a property tax growth credit for eligible claimants. Additionally, it mandates that if a property’s actual value increases by 15% or more, the assessor must provide a detailed statement explaining the increase. The bill aims to streamline property tax processes, enhance fiscal responsibility, and provide clarity for property owners.

Furthermore, the legislation transitions certain county officer positions, such as the county auditor, treasurer, and recorder, from elected to appointed roles, with the county board of supervisors responsible for these appointments. It establishes a Local Government Shared-Services Grant Program to encourage local governments to consolidate services and reduce reliance on property tax revenues. The bill also introduces the FirstHome Iowa program, allowing residents to invest in a public trust for future homebuyer expenses, with provisions for tax deductions on contributions. Overall, the bill seeks to improve the management of property taxes and local government finances while promoting homeownership and accountability.

Statutes affected:
Introduced: 11.11, 331.403, 24.35, 444.25, 331.510, 441.21, 10A.518, 25B.7, 103.22, 499B.2, 216.12, 321.1, 48A.2, 331.559, 404.3, 425.1, 35.1, 425.1A, 425.4, 425.6, 425.7, 425.2, 425.10, 425.11, 425.12, 425.13, 425.16, 425.23, 425.22, 425.26, 425.27, 422.26, 425.30, 425.31, 425.32, 425.37, 427.9, 249.1, 435.26, 435.26A, 435.22, 483A.1, 423F.2, 403.2, 403.3, 403.5, 403.19, 403.6, 403.17, 403.18A, 403.9, 428.4, 441.28, 441.30, 441.49, 441.35, 441.33, 8.33, 232D.503, 422.7, 12L.3, 627.6, 633.108, 633.555, 633.678, 633.681, 43.24, 44.7, 44.8, 331.324, 331.322, 63.10, 331.434